Doctrine by topic · DGT Observatory

Housing Under Construction: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 9 rulings · 2016–2026

Current position

The exemption for reinvestment in the construction of a primary residence requires applying the total amount of the sale within a period of two years (before or after the transfer) and completing the work within a maximum of four years from the start of the investment. To consider a building as completed, it is essential to have the final certificate of completion. In the delivery of buildings under construction, both the housing and the land are taxed at the general rate of 21% VAT.

The DGT's position remains constant regarding the requirements for the reinvestment exemption, reiterating the two and four-year periods. No significant doctrinal changes are observed, but rather a confirmation of the criteria regarding the completion of the work and the taxation of buildings under construction at 21% VAT.

Turning points

  1. V2011-25

    Establishes that to consider a building as completed, the final certificate of completion is required, and that in buildings under construction, the delivery of housing and land is taxed at 21% VAT.

Analysis based on 9 of 9 rulings with a stated position. Updated 13 October 2026.

Rulings on this topic

9
V1335-26 1 Jun 2026

Reinvestment exemption for construction property: two- and four-year deadlines

SG de Impuestos sobre la Renta de las Personas Físicas
exención por reinversiónvivienda habitualganancia patrimonialvivienda en construccióntransmisión de vivienda LIRPF — Ley 35/2006 del IRPF art. 38RIRPF — RD 439/2007, Reglamento del IRPF art. 41
Affects CompanyExpat · Non-residentIndividual
V1126-26 19 May 2026

Reinvestment exemption applicable for construction property if timelines met

SG de Impuestos sobre la Renta de las Personas Físicas
exención por reinversiónvivienda habitualganancia patrimonialvivienda en construcciónpromotor LIRPF — Ley 35/2006 del IRPF art. 38.1RIRPF — RD 439/2007, Reglamento del IRPF art. 41
Affects CompanyExpat · Non-residentIndividual

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